SME's - a changing trend in SME failure
SME's - a changing trend in SME failure
This is significant. However, other statistics I saw showed that 70% of SME's in the USA are one person businesses. These are baby boomers who legally go into retirement and then return to the economy as SME's providing services back to their previous employers because of the skills shortage that the departure of baby boomers is contributing to. This trend is definitely occuring in South Africa. The massive skills shortage, which is compounded by the broad range of legislation geared to bring more black Africans into the economy without providing them the necessary skills to do so, is a direct contributor to this trend in South Africa. Government attempts to develop skills in South Africa have been a dismal failure. The apprenticeship system has all but collapsed, which has resulted in insufficient artisans in the country, together with the drive by developed countries to attract artisans to meet the demand created by their economic growth.
The restructuring of the tertiary education has lead to everyone attempting to compete with one another instead of each tier adding it's own unique value to the economy in respect of skills.
My question now is whether or not there is a trend developing whereby there are one person businesses which are highly sustainable due to their origins and source of business, and then a large gap before we see business in the 10 to 20+ employee range? Are we seeing this valley between the one person and the bigger SME?
I think perhaps we are, and I feel that the reason could be globalisation/Walmart effect, which leads to ever reducing prices.
I welcome thoughts or facts on this topic.
Rob Smorfitt
SMEs a changing trend in SME failure - To learn more about this author, visit Dr. Rob Smorfitt's Website.
Like this article? Share it with your friends
I commented on another blog the other day about SME failure. I asked the question whether the failure rate of SME's was up or down. Stefan replied that in the USA the failure rate of SME's has in fact reduced. Does this apply to Africa or more specifically South Africa?
This is significant. However, other statistics I saw showed that 70% of SME's in the USA are one person businesses. These are baby boomers who legally go into retirement and then return to the economy as SME's providing services back to their previous employers because of the skills shortage that the departure of baby boomers is contributing to. This trend is definitely occuring in South Africa. The massive skills shortage, which is compounded by the broad range of legislation geared to bring more black Africans into the economy without providing them the necessary skills to do so, is a direct contributor to this trend in South Africa. Government attempts to develop skills in South Africa have been a dismal failure. The apprenticeship system has all but collapsed, which has resulted in insufficient artisans in the country, together with the drive by developed countries to attract artisans to meet the demand created by their economic growth.
The restructuring of the tertiary education has lead to everyone attempting to compete with one another instead of each tier adding it's own unique value to the economy in respect of skills.
My question now is whether or not there is a trend developing whereby there are one person businesses which are highly sustainable due to their origins and source of business, and then a large gap before we see business in the 10 to 20+ employee range? Are we seeing this valley between the one person and the bigger SME?
I think perhaps we are, and I feel that the reason could be globalisation/Walmart effect, which leads to ever reducing prices.
I welcome thoughts or facts on this topic.
Rob Smorfitt
SMEs a changing trend in SME failure - To learn more about this author, visit Dr. Rob Smorfitt's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
|
To learn more about the Evan Elite Author Program please contact us. |
 | |
|  |
Subscribe to Dr. Rob's articles
 |
|
SME, SMB, SMME, all the debate and info - A resource on SME, SMB and SMME.
|
|
 |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Networking Impacts Income The Leader’s Edge Managing Growth Closed Door Sales Winning Sales Letter |
|
 | ||
 |
Top 50 Political Blogs
Top Political Blogs of 2009 | |
 |
Fortune Hunters
CBC Entrepreneur TV | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
